Waiver Of Premium – Life Insurance, Critical Illness Insurance
Waiver of premium can be added to most insurance plans, but the most common may be adding it to a life, critical or income protection plan. The option does however come at an additional cost to the standard price of the contract however for some people the benefits of such an option may seem worth it.
If you have a life insurance plan, then you will be paying a monthly figure to the provider direct to ensure you stay on cover throughout the term of the contract. There are many benefits that can be added to plans when going through the application process. Adding on waiver of premium as an additional option means that it can give you extra piece of mind if you were to not able to work due to an accident or become ill. However to be eligible the plan you take out would have to be offered at standard rates. If you do become ill or have an accident then you may not be fit for work and therefore may not bring in enough money to then be able to afford the monthly direct debit, therefore waiver of premium may just give you that added protection. Waiver of premium means that the monthly premium you pay to your provider for your insurance would be then paid for by your provider typically after the first 26 weeks of not being able to afford the insurance due to the above reasons as long as you have maintained to pay for the cover for those 26weeks since you were off work. There is however some guidelines that need to be met, it is not as simple as saying you cannot work because you are too ill or injured to work, and you have to be unable to carry out your daily tasks. The company would also then waive the monthly premiums then for you until one of the following occurred, you were at some point able to return to work, the age of which they plan covered you till was reached for example sixty five or you do not meet the definition set by your insurance provider.
Depending on the plan in question the price of your policy will vary, and therefore the price will be different for each individual. The cost of the waiver of premium option is calculated in relation to your monthly premium but no matter how much the premium is if you are eligible for your premiums to be waived then the insurance company will take care of this for you. Like any policy though the price of the insurance can differ and no matter what the price may be even if you feel it is only small there may just be another insurance provider that can get you a better deal for your money. They may be able to get you a better contract for your money or get it at reduced rates.